Two Iowa hospice providers are embroiled in a lawsuit over allegations that one was “poaching patients.”

National Hospice Management (NHP) operates hospices under a number of brands across several states, including Beacon of Hope Hospice. The company is suing Moments Hospice of Davenport in the U.S. District Court for the Southern District of Iowa. 

The suit alleges that a former Beacon of Hope care coordinator, Jaycie Klein, violated a noncompete agreement by attempting to recruit Beacon of Hope patients to switch their care to Moments Hospice.

“National Hospice’s business depends on its customer base,” NHP’s complaint filed with the court alleged. “Since leaving National Hospice, Klein has solicited National Hospice’s customers. Klein has continued to contact National Hospice’s customers and their family members in violation of her non-compete agreement.”

NHP is seeking an injunction to prevent further alleged interference with their patients.

Klein’s noncompete agreement with NHP reportedly stipulated that she not compete with the company or solicit its patients for one year after leaving their employment, according to the complaint. The noncompete agreement applied anywhere within 65 miles of NHP’s operations in Davenport, Iowa and Galesburg, Illinois.

“Poaching” patients, as the lawsuit alleges, can result not only in lost revenue for a hospice provider but also increase their rate of live discharges, which can get them in regulatory hot water.